DriveGain chief executive Simon East claims the unnamed insurance company is looking to combine the app with a cheaper car insurance offer.

“We’re in the process of doing a deal with an insurance company to offer our technology as part of the deal,” he said.

He also says his firm is negotiating to supply the app to a European government and a major car maker.

Co-Operative Insurance already uses black box technology transmitted from cars to monitor driving standards of some customers – and in return reviews their performance every 90 days to reward improvement by cutting insurance costs.

Those that fail to improve are penalised with higher insurance premiums.

Drivers can plot their progress by logging in to analysis of their statistics online so they can take action to keep their driving costs down.

A recent survey by Italian car giant Fiat revealed that 83% of motorists agreed they would take their foot off the pedal and try to drive in a more eco-friendly way in return for cheap car insurance.